Gold Price: XAUUSD Bulls Recover Lost Ground, May Approach $1,663 Price Level

XAUUSD Price Analysis – March 4

XAUUSD pair recovered all the losses it made on Friday after moving ahead of the moving average price zone of 5 and 13, with the metal returning to the region of $1,600 level. The precious metal stays volatile, moving near to the recent highs and may soon reach a price level of $1,663. Current market uncertainty due to coronavirus is expressed in the price action.

Key Levels
Resistance Levels: $1689, $1663, $1655
Support Levels: $1600, $1563, $1541

XAUUSD Long term Trend: Bullish

Gold price reversed losses but price action is back close to the level of $1,640. If there is no upside-through, we anticipate this level to transform into resistance. Nonetheless, between $1,655 and $1,625 ranges there is also a chance of price action trading very flat.

The yellow metal is likely to gain support from the moving average of 5 and 13 close to $1,625.00 handle, and continue to strengthen against the Greenback. The upside zone of the horizontal resistance level at $1,663.78 is a potential upside goal.

XAUUSD Short term Trend: Ranging

On the other hand, in the short term, the exchange rate could stabilize in the $1,640 region while, at the same time, it is doubtful that bears could prevail in the market, and the rate may plunge beneath the low at $1,600 level in the near term.

The short-term risk remains on the upside as the RSI has rebounded near a downward trendline and back above its 50-neutral level, though with the moving average of 13 staying beneath the moving average of 13 despite gaining momentum, some caution may be warranted.

Instrument: XAUUSD
Order: Buy
Entry price: $1,640.64
Stop: $ 1,541
Target: $1,663

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